Flippa Invest Launches: A New Era of Growth Capital for Digital Businesses

Laurits Just, formerly the founder of Bits for Digits, brings his expertise in partial business exits to Flippa’s latest venture – Flippa Invest.

This video dives into Flippa’s new investment platform, which allows business owners to raise growth capital from accredited investors.

We’ll explore the differences between traditional exits and fundraising, understand the requirements for raising capital, and discover various deal structures available to business owners.

Whether you’re a business owner considering fundraising or an investor interested in growth opportunities, this comprehensive guide provides valuable insights into the future of online business financing.

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A New Chapter in Online Business Financing

Laurtis’ journey began in 2021 when, inspired by a blog post about 37Signals’ partial exit to Jeff Bezos, he created a platform for business owners to sell minority stakes in their companies.

After successfully bootstrapping and eventually selling Bits for Digits to Flippa, Laurits now leads Flippa Invest, a platform designed to help online business owners raise growth capital.

Understanding Growth Capital vs. Traditional Exits

Unlike traditional business sales or investment funds, Flippa Invest creates a marketplace where business owners can connect directly with accredited investors.

With nearly 80,000 accredited investors registered, the platform offers a unique opportunity for businesses seeking growth capital without the high-pressure expectations often associated with venture capital funding.

The platform serves businesses that might fall between traditional funding routes. While venture capital typically demands explosive growth and potential billion-dollar valuations, Flippa Invest caters to healthy, growing businesses that may not fit the venture capital model but still need capital to expand.

Eligibility and Requirements

To raise capital on Flippa Invest, businesses must meet three core requirements: they must be digital businesses (software, mobile apps, media, ecommerce, etc.), show growing revenues, and have a US-registered entity.

Notably, profitability isn’t a strict requirement – the platform welcomes businesses showing strong growth trajectories, even if they’re currently reinvesting heavily in expansion.

Deal Structures and Financing Options

Flippa Invest accommodates various deal structures, from priced rounds with direct equity sales to convertible notes and safe notes.

Business owners can choose between direct raises, working with individual investors, or group raises utilizing Special Purpose Vehicles (SPVs) to pool multiple investors efficiently.

The platform particularly benefits businesses generating between $10,000 and $200,000 in monthly revenue, though these figures can vary significantly based on business model and industry.

Whether running an e-commerce operation needing inventory financing or a SaaS company requiring marketing capital, the platform adapts to different growth needs.

Investment Process and Investor Relations

Business owners maintain significant control over their investor relationships. Through Flippa Invest’s deal room, they can review potential investors’ profiles, evaluate their expertise and potential value-add beyond capital, and choose partners who align with their vision.

How to Apply

Launching in early 2025, Flippa Invest begins with a select cohort of businesses, offering them enhanced exposure to the platform’s investor network.

For business owners interested in being part of this initial launch, applications are open at flippa.com/product/invest, with opportunities to join subsequent rounds on an ongoing basis.

For online business owners navigating the complex landscape between bootstrapping and venture capital, Flippa Invest represents a middle path – one that offers growth capital without sacrificing control or forcing unrealistic growth expectations.

As Laurits notes from his own entrepreneurial experience, this type of platform fills a crucial gap in the market, providing options he wishes had been available during his startup journey.

Questions?

For those interested in learning more about Flippa Invest or applying to raise capital, visit flippa.com/product/invest or contact Laurits directly at [email protected].

Making It Easy to Sell Online Businesses
Flippa provides owners and investors with the tools and expertise to sell.

400,000+ Weekly Active Buyers

15 In-house Brokers and 120 Broker Partners

Negotiate and Receive Offers Fast

Integrated Legal, Insurance and Payments